I have never purchased any kind of CE or mutual fund because I do not want principle risk in terms of NAV/market PPS tank. I have just hand picked the notes I want and that is it that way I do not worry about interest rate inflections, whether my bonds are trading above or below par at any given point in time, etc.

But I just ran a pretty thorough scan and this CE fund popped up as #1. My criteria was mainly long term history in multi-bond sector category. What do you guys think??

15 Year performance = 13.12%
10 Year performance = 13.22%
5 Year performance = 11.19%
3 Year performance = 14.07%
1 Year perfomrnace = 11.28%

Current Annual yield = 9.5%

Investment Objective: The Fund seeks to maintain a high level of current income. As a secondary objective, the Fund seeks capital appreciation.


Portfolio Composition*:



Asset Allocation
High Yield Corporate Bonds 48.8%
Emerging Market Debt 43.1%
Sovereign Debt External Currency 25.8%
Sovereign Debt Local Currency 4.5%
Corporates External Currency 12.8%
Investment Grade Corporate Bonds 3.8%
Cash & Other Securities 4.3%

Credit Quality Allocation**
AA 1.1%
A 3.6%
BBB 22.0%
BB 32.0%
B 26.1%
CCC 8.6%
CC 0.1%
Not Rated 6.5%

Top Ten High Yield Industries
Consumer Cyclical 9.2%
Energy 5.7%
Communications 5.7%
Basic Industry 5.0%
Consumer Non Cyclical 5.0%
Capital Goods 3.7%
Transportation 3.2%
Electric 3.0%
Technology 2.2%
Finance Companies 1.7%

Top Ten Emerging Market Countries
Brazil 7.8%
Mexico 5.2%
Turkey 4.6%
Russia 4.3%
Venezuela 4.1%
Argentina 2.8%
Indonesia 2.5%
Colombia 2.2%
Malaysia 1.4%
Thailand 1.2%

Currency Allocation
US Dollar 95.2%
Brazilian Reals 1.7%
Indonesian Rupiahs 1.2%
Egyptian Pounds 0.6%
Malaysian Ringgits 0.3%
Peruvian Nuevos Soles 0.2%
Mexican Pesos 0.2%
British Pound 0.2%
Polish Zlotych 0.1%
Turkish Lira 0.1%
Euro 0.1%

Average Life (years) 8.1
Effective Duration (years) 5.1
Average Coupon (%) 7.8

Portfolio Statistics:

Inception Date October 29, 1993
Inception Price $15.00
Total Assets*** $242,551,425
Net Assets $184,240,952
Loans**** 13.61%
Preferred Shares**** 0.00%
Reverse Repos**** 10.44%

Market Price $11.90
NAV $11.95
(Daily NAV is available on market quotation systems using the symbol XGDFX.)

Distribution Rate $0.0950 per share
Frequency Monthly (Declared quarterly, paid monthly)